KNOT Secures Refinancing Deals

KNOT Offshore Partners have entered into new senior secured credit facilities in order to refinance the Partnership’s total long term bank debt. The senior secured credit facilities consist of a $20.0 million revolving credit facility and $360.0 million in aggregate principal amount of term loans.

Loans under the senior secured credit facilities will bear interest at a rate per annum equal to LIBOR plus a margin of 2.125%. The term loans will mature in June 2019. The term loans are repayable in 20 consecutive equal quarterly installments commencing in September 2014. The revolving facility terminates in June 2019. The reduced margin is equivalent to a cost reduction of $1.9 million per annum before refinancing costs. Further, the new loan facilities have an improved repayment profile compared to the existing facilities.

Proceeds of the term loans will be used to refinance the Partnership’s existing bank debt of $ 327 million and to repay the seller’s credit to Knutsen NYK Offshore Tankers AS in the amount of $10.6 million (including interest) related to the acquisition of the Carmen Knutsen.

The remaining amount will be used to pay transaction expenses and for general partnership purposes. Closing of the new senior secured credit facilities, which is anticipated to occur in the second half of June 2014, is subject to the execution of security documents and satisfaction of customary closing conditions.


June 10, 2014


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